Batelco has blamed competition and new technology for job cuts and hinted that more layoffs are possibly on the way.

It denied targeting Bahrainis, saying that 17.5 per cent of the expatriate workforce had been axed over the last year, compared to 2.9pc of its Bahraini employees.

'As a result of the impact arising from deregulation in the Bahrain telecommunications industry, combined with significant advances in the deployment of new generation technology, Batelco continues to review its operating model and staffing requirements on an ongoing basis,' said the company.

'The Employee Redeployment Programme (ERP) was developed out of necessity to sustain Batelco's competitive position and adapt to the changing Bahrain market requirements.'

It said job losses were an emotive issue, but blamed 'inaccuracies' in media reports for exacerbating the situation.

The company says it employs 1,496 Bahrainis, representing 93 per cent of its workforce and 114 expatriates, comprising 18 different nationalities (as of the end of last month).

'The 44 staff members who received end-of-service notices in May represent 2.9pc of the Bahraini workforce,' it said in the statement.

'The ERP is only applicable to Bahrainis. The reason why it is not extended to expatriate staff is that they are employed on a contract basis.

'If and when Batelco no longer requires the services of an expatriate, their contract is either not renewed or terminated prior to its expiration, in accordance with its terms.

'During the past 12 months, the contracts of 20 expatriates were not renewed or were terminated. This represents 17.5pc of the expatriate workforce.'

All vacant posts are open to Bahrainis, said the company.

'The majority of available positions are advertised internally and filled by current staff,' it said.

'Batelco only looks outside of the company if a suitable candidate is not found within its ranks.

'Additionally, it only employs an expatriate if no qualified Bahraini can be found.'

The firm, which has appealed against an arbitration court ruling that the axing of the 44 workers was illegal, said yesterday that it would abide by the final decision of the courts.

The ERP was first offered in the first instance as a voluntary programme for one month from August 1 to 30, last year.

It said 39 staff applied, of whom 20 were accepted and 19 were rejected, as their roles were considered crucial.

The second, non-voluntary phase of the programme ran from September 1 to 31 last year, when roles no longer deemed necessary were identified by the general managers of each division, said the company.

'Staff occupying the roles identified as being no longer required, were given the option to either enter a three month redeployment programme or immediately accept the offered compensation package,' it said.

'Staff who opted to enter the three month redeployment programme and who were not successful in acquiring a new position, were then obliged to accept the compensation package.

'In all cases the compensation packages included one month's salary for each year of employment at Batelco, plus in addition, two extra payments - one linked to the employee's grade and another linked to years of service.

'Each extra payment ranges from BD1,000 - BD 5,000, whereby staff with longer years of service and lower job grades would have higher benefit.'

Union Leaders said earlier that the 44 axed Bahrainis, of whom four are women, are on the brink of financial ruin.

The employees, 40 men and four women, filed a court case against Batelco last August and won their case in April, but were allegedly told to stay home on full pay until Batelco found them jobs in the company.

However, on May 29, they were given two days' notice that their contracts would be terminated.

The trade union's la